Business Law and Ethics Assignment: Contract Law, Remedies, Enron Case

This assignment delves into the core principles of business law and ethics, exploring the intricacies of contract law, including its formation, validity, and remedies for breaches. It examines the roles of the court system in resolving contract disputes within the English legal framework. Furthermore, the assignment analyzes a case study involving individuals and contracts, advising on the existence of binding contracts and available remedies. Additionally, the report section of the assignment provides an in-depth examination of the Enron scandal, evaluating it through the lens of ethical corporate governance and the implications of the Sarbanes-Oxley Act of 2002. The document provides comprehensive insights into the legal and ethical dimensions of business operations.

Business Law and
Ethics

Table of Contents
INDIVIDUAL ESSAY..............................................................................................................3
Introduction............................................................................................................................3
Contract law and its blue prints..............................................................................................3
Court system in relation to english legal system and advise the parties above which court
action to pursue......................................................................................................................5
Advise Hilary as to whether binding as whether binding contract exist within herself and
each of following people i.e., Eleanor, Amy and Olivia........................................................5
Explain and discuss various remedies available to the parties...............................................6
Conclusion..............................................................................................................................6
INDIVIDUAL REPORT............................................................................................................6
Introduction............................................................................................................................6
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of
2002........................................................................................................................................7
Conclusion..............................................................................................................................9
REFERENCES.........................................................................................................................11

INDIVIDUAL ESSAY
Introduction
In relation to current business environment, business law and ethics can be defined as
those rules and laws which are formulated to ensure ethical practices in business organization
and commercial activity. This also helps in performing business in appropriate manner. In
present report, there is discussion about laws and procedures for solving particular case given
under case study (Tanner, 2019).
Contract law and its blue prints
The contract can be define as “an agreement which is lawfully binding upon
contracting parties”. Contract law is most significant law which can be used by individual
in day-to-day working. In relation to contract law a contract can be defined within both oral
and written format. In relation to beginning a contract, it is important to involve minimum
two parties so that a contract can be formed. It involved different kind of rules and
regulations and write to the both parties in terms of agreement which has to be fulfilled by
both the parties(Hampton, 2017). Contract can also involve more than two parties it depend
on the nature of contract. It is must for each and every party within the contract to follow the
terms and conditions so that at two ways relationship can be established by establishment of
common interest. If there is any error within the contract in form of breaches, the party which
breach the contract has to pay compensation to the unfortunate party regarding breach of
contract. Therefore, it become liability of suffering party to prove the breach of contract in
the eyes of law so that it can get compensation for the losses at suffer from the breach of
contract. After that, identify the validity of the contract by using different constituents within
the contract (Sisk, 2017). Under this process court will assess the fact related to the contract
as well as the reason behind breaching the contract and then provide the judgement related to
breach of contract. Contract existing in the agreement for making it valid as well as
identifying the consideration related to acceptance that help in establishment of lawful
relationship between both the parties. Offer signifies “as giving proposal with willingness to
other individual person.” Giving offer to a person is completely different to the invitation of
the offer. In relation to the case study of harvey vs facey (1893), this concept is completely
hided among the two judgements. Reason behind this is related to forwarding of telegram by
plaintiff and enquiry related to low cost of property. Ulterior disapproved by defendant
because all the transaction is based on a misunderstanding where the suspected used to
mention the lower cost and send it by the telegram (Pearce, 2017). After that, the plaintiff

send email in relation to showing interest in buying the property at the reduced cost which are
mentioned under the telegram message. In relation to the complaint approach court, it is
invalid agreement and contract because suspect has broken the contract. The complainant
approach court signifies that suspect has broken the contract. Therefore, the Privy Council
has declared that telegram by which reduced cost was mentioned was invitation to offer as
well as offer made by complainant who will disapproved by defendant, thus there is no
contract made among parties. The other judgement in relation to landmark is fisher vs bell
(1961) in that court has declared every items displayed in showroom as well as shop is
determined as invitation to offer and the individual person who willingly buy those items is
considered as an offer to its shopkeeper.
Acceptance is the next level in relation to formation of a contract within two parties.
Here is the individual person for the party going to contract has to accept some offer given by
some other person. It is mandatory for the parties to ensure a proper communication system
so that they can easily communicate the acceptance. Acceptance can be easily removed by
following the proper process. There is also limit for in the acceptance which involve non
reporting system after it has been keep in the terms of transmission by both the parties and
now they are bonded to fulfil the contract.
In a valid contract there is also existence of consideration. It can be defined as
something which is directly related to both the parties who are dealing with the contract. A
consideration can be both financial and non-financial terms where both parties have to agree
on different promises to each other for fulfilment of consideration and achieving objectives of
contract (Luetge, Armbrüster and Müller, 2016).
It is necessary for all the parties involved within the contract to enter into a lawful
relationship but formation of a contract and fulfilment of rules and regulations of a contract.
Basically, contract is based on establishment of a relationship between two parties so that
lawful relationship can be established. There are different kinds of contracts which involve
different parties like husband wife father son and so on. The judgement in relation to this
landmark Balfour Vs Balfour is there is an agreement among wife as well as husband
therefore, the court declared that, there is no lawful intention among husband and wife and it
was not considered as a valid contract (Swanson and Frederick, 2016).

Court system in relation to english legal system and advise the parties above which court
action to pursue.
In relation to solving these kinds of issues the judiciary system played different kind of
roles which are important for maintaining the environment related to legal formalities and
authorities. This system is divided in two categories which include criminal and civil codes.
The proper description of the systems is discussed below:
Civil proceedings: include all those proceedings which can be resolved within the
judiciary premises. Judgement under the civil proceedings considered as less difficult task to
be resolved by the judges. Under this kind of proceeding, there is use of sports like magistrate
court country court supreme court and various others. Out of country can easily resolve
maximum cases by resolving the main issues.
Criminal proceedings: it includes those types of crimes which are covered under the
criminal act and the difficult for the judges to resolve. There are different kinds of processors
in relation to the courts under the criminal proceedings where the court cases are resolved.
Under this criminal proceeding the courts are divided in category of magistrate court crown
court and the court of appeal (Mayer, 2017).
In relation to resolving the case as well as achieving a satisfactory level, it is
important for contribution parties to involve sport of the country within their matter. This
kind of food is helpful parties in solving the conflicts as well as dealing with the issues
related to the experiment in an appropriate way. Apart from this, there is different kind of
courts which are available for solving the conflicts if these conflicts cannot be solved by the
court of country.
Advise Hilary as to whether binding as whether binding contract exist within herself and each
of following people i.e., Eleanor, Amy and Olivia.
Case 1: Under the present scenario of this case, advertisement which has been place
by Hillary will be treated as an invitation to offer Partridge vs Carttinden case. It is clearly
stated by the court that advertisement will be considered invitation to offer. This will remain
ceased because this offer was made by Eleanor and Hillary counted it. There is no conflict
between both the parties because when Hillary made offer it was rejected by Eleanor.
Case 2: In relation to the general rule it can be an exception that when acceptance will
be sent through of Postal method it cannot be revoked after putting it into the transmission

mode and both the parties are bonded to the contract after the other party receive the contract
later. Under this system, Ami has no legal right to revoke the acceptance this is because she
already posted their acceptance letter. So there is no chance of other judgement on behalf of
this case related to Entores vs Far Miles East Corporation.
Case 3: Under this case the notice posted by the Hillary will be considered as an
invitation to the offer this is because the offer is related to purchasing of the paintings which
are drawn by Olivia. There is the rejection by Hillary which simply means that there is no
contract between both the parties.
Explain and discuss various remedies available to the parties
There are different kind of remedies which can be used under the contract law by the
both the parties for compensation and particular act (McLean, 2017). Therefore,
compensation can be defined as a common reading which is defined by the fort in relation to
the breach of contract as compensation for the damage suffered by the parties in relation to
breach of contract. Relation to awarding compensation to the party who suffered within the
contract also will feel different kind of formalities to that establishment of equality between
the contracts after breach of the contract. It also includes different kind of remedies which are
related to specific performance or act. Under this system the party found guilty relation to
breach of the contract as to perform a specific act to the other party for fulfilling its
obligations. These both remedies can be mainly consider by court for declaration of result
within given scenario because offering advantages to party which is innocent is quite
necessary in related to any agreement case.
Conclusion
It can be analysed from the above mentioned discretion, business laws are important
part of commercial activities which helps in dealing with various kind of parties. It can also
concluded that business laws and ethical values health organisation in achieving its objectives
by providing a proper Framework for the business and help regarding different factors and
unethical practices.
INDIVIDUAL REPORT
Introduction
Business laws and ethics play important role within the organisation ensuring the use
of ethical practices within the organisation so that form can achieve the desired goals and

objectives in an appropriate manner (Thompson, 2017). The present report is carried on
Enron Company and it will go to focus toward Fraud Scandal where Sabane-Oxley Act 2002
will be also considered in it.
Discuss this case in relation to ethical corporate governance and the Sabance-Oxley Act of
2002
Enron corporation case scenario – After ending of 2001, it can be seen that Enron’s
company is facing financial problem within the organisation. This is the problem faced by the
organisation which is related to the accounting of the firm related to major frauds in
accounting.
Ethical corporate governance – Ethical corporate governance is also related to using
the existing resources of the organisation by creating awareness within the general public. It
is important for the organisation to maintain the article corporate governance so that it can
achieve its goals and objective by combining with the resources available within the society
and fulfilling its obligations towards the society (Cortez, 2018). It ensures that business
activities must be conducted in ethical way so that organisation can fulfil its desire in a
particular area by reducing the penalties imposed by legal authorities for non-fulfilment of
ethical corporate governance.
Sabane-Oxley Act of 2002 –This act is directly related to saving the interest of
investor where investor wants to invest their fund in a commercial activity for gaining better
interest. This will brings different kind of benefits to the business organisation and can also
lead to fraudulent practices in general market. Therefore, controlling the flow of investment
as well as the improper activity this act is commenced (Hall 2018). This access directly
linked to the performance of the organisation where it has to provide the information of
investment in front of stakeholders. It is directly related to the accounting information of the
organisation which has to be shown by the organisation to its stakeholder in a fair and
appropriate this site also contains provision regarding audit of the accounts which enables the
organisation to maintain the proper records of its accounts for ensuring positive remarks in
auditing. The main reason behind conducting this act and a corporate sector company is to
reduce the unethical practices as well as collect information related to the scandals conducted
by business firms within the market. For performing commercial activities, this no also
ensure that proper legislation is followed by recording and maintaining of accounts. If of

business organisation fails in imposing the regulation on the organisation then a penalty of
fine will be imposed to the firm (MCLAUGHLIN, 2018).
There are different kinds of business organisation which are involved in different
business candles in past years which also lead to decreasing in a trust of stakeholders. The
major objective of this act is to minimise the negative impact on Enron cooperation. This is
because organisation is facing financial difficulties because of fraud and accounting practices.
Implementation of this act organisation can easily identify fraudulent activities done by
different individuals working on these jobs. This will also improve the position of the
organisation as well as impact on Goodwill in front of stakeholders. In the current market due
to false accounting statement organisation lost approximately $74 billion. Because of these
practices organisation become a bankrupt form with the top 10 biggest flood related
corruption (Bu, 2019).
Discussion of the case in terms of Corporate Governance and ethics
It is necessary to the organisation to identify the concept of corporate governance and
ethics so that it can manage its functioning and try to take advantage of it. For surviving
within the market organisation needs investment from its different investors. By using the
concept of corporate governance and ethics within the funding system of the organisation can
identify through investors which will help the firm in increasing the profitability by providing
appropriate fund (Madden, 2019). Structure full field of corporate governance will
successfully help the organisation in identification of information related to true investors and
can use by the firm to increase the confidence of investors by providing appropriate
information to them. In relation to current business scenario, it can be seen that management
within the organisation is not fulfilling the corporate governance and ethical responsibilities
with increasing the burden of the debt on the organisation as well as decreasing the chances
of success because of improper management.
In relation to ethical values, it is mandatory for organisation to fulfil all the
requirements of the stakeholders and involve them in identification of utilisation of fund. This
is because help the organisation in building the trust of the investor within the firm as well as
can reduce the negative impact of scandals and accounting frauds within the firm on the mind
of investors. If organisation is not working in an ethical manner than performance of business
activity will be difficult for the organisation and can lead to closure of operation in future. By
using the concept of corporate governance of business form will be able to take decision

effectively as well as achieve different advantage to attract investors and issue low level of
risk.
Discussion of the case in terms of Sabane -Oxley Act, 2002
Enron cooperation becomes the main reason for introduction of this act within the
market. This is because organisation is passing with fraudulent activities within the
accounting practices and fund management. Prospective act shoes that in relation to the
organisation it is not following the laws and policies related to ethical practices. This act is
directly associated with preparation of a proper accounting statements of the organisation so
that actual position of the organisation can be identified (NOBLE, 2019). In addition to this,
because of big candles conducted by the organisation there is difficult to conduct appropriate
audit of the accounts and can lead to satisfaction within the stakeholders. This is also
associated with increasing the determination of stakeholders within the firm but clearly
identifying the current formulation of accounting statements and the position of the form
within the market. This makes it essential for the organisation to use appropriate statements
which will result in management of appropriate working environment. After the beginning of
this law it helps in defining the roles and responsibility of each and every account within the
organisation. If a particular problem is approaching again and again within to the auditor of
the organisation then organisation will be liable for the default within the functioning system.
The organisation will mark as an unethical form if the scandals are so wider according to the
nature of the business and it is impossible to conduct business activities in future because of
practices related to scandals. This can create a breach of contract with different stakeholders
within the organisation where the corporate governance will be discussed within the business
from to make decisions effective and take advantage of public and private investment which
is important for the organisation. In relation to the current situation the major problem behind
the organisation is the capability.
Conclusion
It can be concluded that business laws are important for the organisation in dealing
with different type of commercial activities. It is also seen that Sabane-Oxley Act 2002 Is
appropriate law which is formulated by the organisation in relation to fulfilments of business
transactions as well as achieving ethical functioning within the firm. It can also concluded
that it is necessary for a business organisation to prepare financial statements using share
information in an effective manner because by presenting the wrong statement organisation

can lose its investors as a trust of customers which can arise financial problems to the firm.
This can also impact on the brand value because of legal action taken by legal authorities in
government bodies.

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